Microsoft gets OK to send chips to the UAE

The US government has given Microsoft permission to export advanced AI chips to one of its own facilities in the United Arab Emirates, according to Axios. This deal is part of the PC giant’s $1.5 billion investment into the Emirati technology firm G42 first announced in April.

The Biden administration, which reportedly brokered the deal earlier this year, did so to box out the Chinese government, which has sought to expand its influence with the Persian Gulf’s technology sector. In exchange, G42 has been working to assure US authorities that it can be trusted, despite ties to China.

In greenlighting the latest export, which has not yet been formally announced by the US Commerce Department, the administration will place extensive prohibitions on who can access Microsoft’s facility in the UAE, including China, its officials, and any sanctioned individuals. It’s not yet clear which company’s chips Microsoft will be exporting.